Please read the Harvard Case Study eBay Inc.: Internet Success or Fairy Tale? by David F. Hawkins and Jacob Cohen. This case study can be found in the Harvard Case Study website using the following link: http://cb.hbsp.harvard.edu/cb/access/13637669 This will take you to an Authorized Student register/log-in page. If this is your first coursepack purchase, you need to register on the site to create a username and password. If you have previously purchased a coursepack, log in with your existing username and password. Follow the prompts to log-in, and purchase the coursepack. Please answer the following questions about the case study:

Use the 2002 Financial Statement data to replicate the Meyer's report calculations that illustrate the following conclusion based on the 2001 data reached in the report: eBay has never been profitable. Why? Why not?

Do you agree with Meyer's report concept of "unfettered" cash flow? Why? Why not?

What other conclusions can you reach about the company from the case study?